What Type Of Economy Does Iraq Have ?
Iraq’s main resource of income is petroleum, which allows the country to earn nearly ninety-five percent of its foreign revenue.
The war in 1980s with Iran caused a major financial problem because of high defense expenditure, and Iraq had to borrow heavily from other nations. During the Iran-Iraq war, the country is said to have lost around $80 billion.
After 1988, new pipelines were constructed and the facilities were improved and increased. This allowed the export of oil to increase tremendously. The GDP of the country was 56 percent in the 1960s, and it reached 57 percent in the 1970s. Because of the Iran-Iraq war that was fought between the two countries in the 1980s, the GDP ended up declining by 23 percent.
After having a short term boom period, Iraq was once again ostracized and faced international sanctions when it invaded Kuwait in 1990. This adversely affected its economy. Iraq could only export oil to meet some basic needs like food and medicine. This trend is continuing even today. The living standards in the country are poor. Many things are not available, and people have to pay high prices to buy what is available. The country has high rate of unemployment and child mortality. Also, poverty is widespread.
In addition, after the fall of Saddam Hussein, the country has been facing frequent insurgent attacks, which have also had an adverse effect on the economy. While the economy of the country is dependent on petroleum, more efforts have to be made to ensure that the GDP of the country increases.
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